Binance
What is Binance?
Binance is a well-known and established crypto exchange with a reputation of a prominent trading platform. Its daily trading volume is over $13B, and the number of clients exceeds 150 million, as of January 2024.
The History
Binance is a relatively young yet the most often used platform worldwide. It is meant to offer a fast, straightforward, and reliable trading experience for the market participants. Binance’s widespread adoption across crypto communities is the best proof of its success.
Binance’s inception takes its roots back in 2017 in China. Changpeng Zhao and Yi He - Binance founders and former members of the OKCoin team. CZ has been working in the Blockchain.com wallet team since 2013.
Binance launched a successful ICO in July 2017, raising $15M for its BNB token. Like many other projects of that time, BNB was developed on the Ethereum network. It took 6 months for Binance to path from a startup to the largest platform on the market. At the start of sales, 1 BNB was valued at $0.115. As of January 2024, its price exceeds the $300 mark.
Restrictions
Several jurisdictions limit access to using Binance. They include the USA, Ontario (Canada), and Singapore. These restrictions can be explained by various factors, such as regulatory requirements in those jurisdictions. In some countries (China, Malaysia, Japan, the UK, and Thailand), the platform is restricted because of local regulations.
Some European governments, such as Germany, Italy, and the Netherlands, may have constraints on trading futures and derivatives on the exchange. However, given that regulations are evolving, these restrictions may be changed in the future, while Binance is taking steps to comply with local regulations by providing alternative solutions. For example, the launch of the Binance US platform specifically for US customers.
Binance Fee Structrure
Fee policy is a crucial factor traders assess when choosing a crypto exchange, as it affects their overall experience and profits. The Binance fee structure has a multiple-layer structure, varying depending on each user's status. Regular users are charged 0.1% when trading on the spot market. In the summer of 2022, the exchange creators removed fees on the spot BTC trading pairs, extending the same zero fee option to the ETH/BUSD pair. It allowed Binance users to save on fees and made trading more attractive and accessible on the platform.
Margin Trading
Binance allows for up to 10X leverage trading. Since users can operate higher trading deposits, it helps grow potential profits. Besides, Binance allows for trading derivatives such as Binance Futures, settled in a range of cryptocurrencies, as well as Binance Options, allowing for increased leverage on trades. These tools provide traders with flexibility and a variety of strategies, expanding the opportunities for effective portfolio management.
An innovative approach, low fees, and robust security make Binance a prominent platform for crypto trading. Considering all the advantages and features, Binance stands as an essential tool for trading cryptocurrencies in the modern financial market.
CEO at Binance